Note 9 - Income Taxes

3 Months Ended

Apr. 02, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 9 — Income Taxes

The Company recorded a net income tax expense of $7 thousand for the three months ended April 2, 2023 and a net income tax benefit of $1 thousand for the three months ended April 3, 2022. The effective tax rate was (0.6%) and 0.1% for the three months ended March 31, 2022 and 2021, respectively. The effective tax rates differ from the statutory tax rate of 21%, primarily due to the Company's valuation allowance movement in each period presented. It is more likely than not that the Company will not realize the federal, state, and certain foreign deferred tax assets as of April 2, 2023. As such, the Company continues to maintain a full valuation allowance against all of its US and certain foreign net deferred tax assets as of April 2, 2023.